BUENOS AIRES: Moody's Gives Caa1 GS LC Rating to ARS812MM Bonds---------------------------------------------------------------Moody's Latin America Agente de Calificacion de Riesgo hasassigned a Caa1 -- Global Scale local currency -- and Baa3.ar --onArgentina's National Scale-- ratings to the Province of BuenosAires's Series III Local Market Bonds for ARS812 million. Theratings are in line with the province's long term local currencyissuer ratings, which carry negative outlook.

RATINGS RATIONALE

The 2015 Local Market Bonds Program has been authorized by theGovernor's Decrees 46 and 546/2015 and by Law 14.652 of theProvince of Buenos Aires (2015 Budget Law). The notes to be issuedunder the program constitute direct, general, unconditional,secured and unsubordinated obligations of the province and themaximum amount to be issued under the new Series III represents0.3% of total revenues budgeted for this fiscal year.

The new Series III will be payable in Argentine pesos and soldentirely in the local capital market. This third Series will bear28.5% fixed interest rate for the first three coupons, butvariable for the remaining ones, will mature in 18 months and showbullet amortization.

The assigned ratings are based on preliminary documentationreceived by Moody's as of the rating assignment date. Moody's doesnot expect changes to the documentation reviewed over this periodor anticipates changes in the main conditions that the notes willcarry. Should issuance conditions and/or final documentation ofany of the series under this program deviate from the originalones submitted and reviewed by the rating agency, Moody's willassess the impact that these differences may have on the ratingsand act accordingly.

WHAT COULD CHANGE THE RATING UP/DOWN

Given the negative outlook on the issuer ratings, Moody's does notexpect upward pressures in the Province of Buenos Aires's ratingsin the near to medium term. However, a change in Argentina'ssovereign outlook back to stable could lead to a change in theoutlook back to stable of the Province of Buenos Aires.Conversely, a sharp deterioration of the Province of BuenosAires's financial results, coupled with higher debt levels couldadd downward pressure to the assigned ratings. The province ofBuenos Aires could also be downgraded if the negative outlook onthe sovereign rating materializes into a rating downgrade.

The report notes that the latest forecast is more pessimistic thanthe one released last week, when analysts expected the GDP tocontract by 1.76 percent and inflation to hit 9.23 percent.

Analysts' lack of confidence in Brazil's economy is based on thecontinuing drop in the value of the real against the dollar andthe recent increase in the cost of public services, such as water,electricity and transportation, the report relates.

The report discloses that the government said in July that itwould not meet the 1.1 percent primary fiscal surplus target itset for this year and the goal was now to cut public spending bythe equivalent of 0.15 percent of GDP.

The government plans to slash the budget by BRL8.6 billion ($2.66billion), a move that will further slow economic activity anddeepen the contraction, the report says.

Following the announcement on Aug. 3, 2015 that HSBC Holdings Plcreached an agreement to sell its Brazilian subsidiary HSBC BankBrasil S.A. to Banco Bradesco S.A., S&P is changing the groupstatus on HSBC Brazil to "nonstrategic" from "moderatelystrategic"" to HSBC Holdings Plc. The group status change doesnot impact the issuer credit rating on HSBC Brasil because thebank now incorporates one notch of uplift from its SACP due to its"moderate" likelihood of support from the government given its"moderate" systemic importance to the Brazilian financial system.

The CreditWatch Developing on HSBC Bank Brasil S.A. reflects thepotential uplift to the ratings should authorities approve thetransaction. If this occurs, S&P would then decide which level ofsupport from Bradesco S&P would incorporate into HSBC Brasil'sSACP. Alternatively, S&P could lower HSBC Bank Brasil ratings ifthe acquisition is not approved by the regulators and the bank'scredit fundamentals deteriorate, particularly its businessposition and funding, in turn hurting it SACP. In this scenario,it would not be able to count on parent support and S&P wouldreview its systemic importance.

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DIA MALLORCA: Creditors' Proofs of Debt Due Aug. 18---------------------------------------------------The creditors of Dia Mallorca Leasing Ltd. are required to filetheir proofs of debt by Aug. 18, 2015, to be included in thecompany's dividend distribution.

DRAYTON CAPITAL: Creditors' Proofs of Debt Due Aug. 14------------------------------------------------------The creditors of Drayton Capital Limited are required to filetheir proofs of debt by Aug. 14, 2015, to be included in thecompany's dividend distribution.

DRIFFIELD LTD: Creditors' Proofs of Debt Due Oct. 2---------------------------------------------------The creditors of Driffield Ltd. are required to file their proofsof debt by Oct. 2, 2015, to be included in the company's dividenddistribution.

GIRANDOLA INVESTMENT: Creditors' Proofs of Debt Due Aug. 17-----------------------------------------------------------The creditors of Girandola Investment Ltd. are required to filetheir proofs of debt by Aug. 17, 2015, to be included in thecompany's dividend distribution.

SAAD INVESTMENTS: Cayman Proceedings Wins US Court Recognition--------------------------------------------------------------The Hon. James L. Garrity, Jr., of the U.S. Bankruptcy Court forthe Southern District of New York approved the request ofrecognition of Saad Investments Company Limited's liquidationproceedings pending before the Grand Court of the Cayman Islands,Financial Services Division filed by the joint officialliquidators of SICL.

As reported in the Troubled Company Reporter on July 2, 2015, theJoint Official Liquidators -- Hugh Dickson of Grant ThorntonSpecialist Services (Cayman) Limited and Stephen Akers and MarkByers of Grant Thornton U.K. L.L.P -- are in the midst of alengthy and complex liquidation process based in the CaymanIslands for which they are the sole persons authorized to act onSICL's behalf. SICL's multibillion-dollar liquidation isinternational in scale and has been in progress for almost sixyears.

The Cayman Island Proceeding involves over $9.7 billion in assetsand about $3.754 billion in liabilities, stemming from holdingsand obligations located in multiple jurisdictions in theCaribbean, Europe, Australia, and Middle East.

Accordingly, in carrying out their duties, the JOLs have alreadysought and received recognition of the Cayman Islands Proceedingas a foreign main proceeding in multiple jurisdictions, includingin England and Australia, and brought various legal proceedings torecover SICL's assets on behalf of creditors. To date, they haverecovered over $450 million in assets.

The JOLs seek recognition of the Cayman Islands Proceeding toefficiently administer SICL's assets and investigate SICL'saffairs in the United States.

There are multiple foreign proceedings related to the CaymanIslands Proceeding that have already received recognition asforeign main proceedings in U.S. court. First is Saad InvestmentsFinance Company (No. 5) Limited, which is a wholly ownedsubsidiary of SICL and also in official liquidation in the CaymanIslands. Due to a conflict, Petitioners were not appointed asJoint Official Liquidators of Saad Investments Finance Company(No. 5) Limited; instead Mark Longbottom and Nicholas PaulMatthews of Kinetic Partners were appointed as the entity's JointOfficial Liquidators.

Saad Investments Finance Company (No. 5) Limited's Cayman Islandsinsolvency proceeding was recognized as a foreign main proceedingby order of the Bankruptcy Court for the District of Delaware,Case No. 09-13985-KG, Docket No. 39, Dec. 4, 2009.

The second related proceeding is Awal Bank, BSC, which is aforeign banking corporation incorporated in the Kingdom ofBahrain. SICL is a 48% shareholder of Awal Bank. On July 30,2009, the Central Bank of Bahrain placed Awal Bank intoadministration and appointed Charles Russell, a British law firmwith a Bahrain office, as External Administrator. Awal Bank'sBahrain insolvency proceeding was recognized as a foreign mainproceeding by order of the Bankruptcy Court for the SouthernDistrict of New York, Case No. 09-15923 (ALG), Docket No. 18,October 28, 2009. Subsequently, Awal Bank filed a voluntarypetition under chapter 11 of the Bankruptcy Code also in theBankruptcy Court for the Southern District of New York, Case No.10-15518 (ALG).

Finally, there is a third set of proceedings for seven of AwalBank's subsidiaries -- Awal Master Fund, Awal Finance CompanyLimited, Awal Feeder 1 Fund Limited, Awal Finance Company (No. 2)Limited, Awal Finance Company (No. 3) Limited, Awal FinanceCompany (No. 4) Limited, and Awal Finance Company (No. 5) Limited(collectively, the "Awal Subsidiaries"). Each of the AwalSubsidiaries has liquidation proceedings in the Cayman Islands.Chris Johnson, Russell Homer, Bruce Alexander MacKay, and GeoffreyLambert Carton-Kelly were appointed as the Joint OfficialLiquidators of the Awal Subsidiaries. The Awal Subsidiaries'Cayman Islands proceedings were recognized by order of theBankruptcy Court for the Southern District of New York, Case No.15-10652 (MEW), on May 5, 2015.

The joint official liquidators of SICL filed a Chapter 15 petition(Bankr. S.D.N.Y. Case No. 15-11440) in Manhattan in the UnitedStates on May 29, 2015, to seek recognition of SICL's winding upproceedings in the Cayman Islands.

The U.S. case is assigned to Judge James L. Garrity Jr. RandallAdam Swick, Esq., at Reid Collins & Tsai LLP, serves as counsel inthe U.S. case.

TN SHIPS 1: Creditors' Proofs of Debt Due Aug. 12-------------------------------------------------The creditors of TN Ships 1 Limited are required to file theirproofs of debt by Aug. 12, 2015, to be included in the company'sdividend distribution.

DOMINICAN REPUBLIC: Customs 1H Revenue Jumps 15.5% to US$113.3MM----------------------------------------------------------------Dominican Today reports that Dominican Republic Customs Agencyrevenue from January to July jumped 15.5% to RD$51.0 billion(US$113.3 million), or RD$6.8 billion more than the same period ayear ago.

Revenue was RD$8.4 billion just in July, a 18.4% increase, orRD$1.3 billion more than the same month in 2014, according toDominican Today.

In a statement released Aug 2, Customs said revenue was 8.6%higher (RD$660.9 million) than the National Budget estimate ofRD$7.7 billion, the report adds.

S&P also affirmed the 'BB' global scale and 'mxA' national scaleissue-level rating on the company's senior unsecured notes. The'3' recovery rating on the senior unsecured debt remainsunchanged, indicating S&P's expectation for meaningful (upper halfof the 50% to 70% range) recovery in the event of payment default.

S&P subsequently withdrew the ratings on the MXN 700 million(about $50 million) "KUO10" senior unsecured notes (CertificadosBursatiles) originally due on November 2015, following thecomplete repayment of balance outstanding. The company repaid thebalance using part of the proceeds from a new credit facility forMXN 1,000 million (about $65 million) due 2020 granted by Bank ofAmerica, N.A. on July, 20, 2015, which will not rate.

The outlook revision reflects S&P's view that the company's creditquality has deteriorated as a result of softer macroeconomicconditions, depressed oil prices and the corresponding impact ofpetrochemical products prices, and foreign exchange ratevolatility. Consequently, the key credit metrics' performance hasbeen below S&P's previous expectations. Although S&P anticipatesan improvement in the next two years, it believes that improvementmight be slower or curtailed by heightened foreign exchangevolatility and sluggish oil price recovery. S&P's negativeoutlook reflects the risk that the company might not improveperformance to levels where credit measures will be appropriatefor current ratings and that these could even further deteriorateif business conditions worsen, leading potentially to lower itsfinancial risk profile.

S&P could lower the ratings if KUO's operating performancedeclines, weakening its financial performance. This could stemfrom softer economic conditions, or further volatility in rawmaterials prices and foreign exchange, driving the company's totalconsolidated debt to EBITDA to exceed 4.0x without considering therecognition of JV results.

S&P could revise the outlook to stable if the company's key creditmetrics perform in line with S&P's projected base case scenario,evidenced by a total consolidated debt to EBITDA between 3.0x and3.5x without considering the recognition of JV results on aconsistent basis.

"Our ratings on AES Panama reflect our assessment of its 'b+'stand-alone credit profile SACP. The SACP is based on thecompany's "fair" business risk profile and "aggressive" financialrisk profile, as our criteria define these terms. It alsoreflects the company's "less than adequate" liquidity," S&P said.

The stable outlook reflects S&P's expectation that AES Panama'sadjusted FFO to debt and adjusted debt to EBITDA will strengthenthrough 2015 and 2016 due to increased generation, resulting inlower purchases in the spot market. S&P expects FFO to debt to be7% in 2015 and 16% in 2016 and adjusted debt to EBITDA to be 6.7xand 3.6x, respectively.

Because AES Panama is a government-related entity, a downgrade ispossible if S&P was to revise its SACP downward by more than onenotch. This could result from sustained FFO to debt of less than12%.

An upgrade would require the company's adjusted debt to EBITDA toremain below 5.0x. An improvement in the company's liquidity toS&P's "adequate" assessment could also lead to an upgrade.

The ratings on Vision reflect S&P's view of the bank's "adequate"business position among banks in Paraguay, its "moderate" capitaland earnings (based on S&P's forecasted RAC ratio), and its"adequate" risk position, given its asset quality metrics. S&Palso incorporates its assessment of its "above average" fundingdue to its well-diversified and stable deposit base, and its"adequate" liquidity, with liquidity metrics in line with otherrated banks in the country. The rating on the bank is the same asthe SACP, 'bb-', because S&P do not incorporate notching fromexternal support (neither from the government nor from the group).

The stable outlook reflects S&P's expectation that the bank willconsolidate its RAC ratios at moderate levels for the next 12-18months, gradually improve its asset quality metrics, and maintainits adequate business and funding and liquidity profiles.

S&P could take a negative action on the ratings if improvements incapital ratios do not materialize as expected, with RAC ratiobefore diversification above 5%, and/or if asset quality metricssignificantly deteriorate.

A ratings upside is limited, at this point, by S&P's BICRA onParaguay. S&P would need to see improvements in its assessment onParaguay's banking industry, while the bank's credit factorsremain constant, in order to upgrade the ratings.

The rating affirmation reflects the port's higher traffic volumefollowing its expansion. Therefore, financial performancecontinues to be in line with S&P's expectations.

The rating on the bonds continues to reflect the project'sstrengths:

-- A favorable concession agreement with a clear mechanism of tariff adjustment, service quality, and mandatory investments, with a detailed time schedule and triggers properly defined in terms of capacity reached.

-- No exposure to construction risk because the new berth works were completed on time and within budget in the last quarter of 2014.

-- Relatively low operating risk and sound minimum and average debt service coverage ratio (DSCR) of 1.3x and 2.3x, respectively.

Several weaknesses mitigate these strengths:

-- The project's exposure to the volatile commodity and container trade volumes because potential decreases in traffic levels and/or regional production could hinder TPE's revenues.

-- Small scale of operations compared with other ports in the region.

-- Relatively concentrated customer base. As of December 2014, TPE's top 10 clients generated more than 70% of its consolidated revenues.

-- Exposure to climatic factors, such as the El Nino phenomenon, which are beyond TPE's control.

======================P U E R T O R I C O======================

PUERTO RICO: Defaults on Most of $58 Million Debt Payment---------------------------------------------------------Aaron Kuriloff at The Wall Street Journal reports Puerto Ricomissed most of a $58 million bond payment, marking the firstdefault by the U.S. commonwealth and escalating its attempt torestructure about $72 billion in debt.

The payment to bondholders is the first skipped since Gov.Alejandro Garcia Padilla in June said the island's debts wereunsustainable and urged negotiations with creditors, which rangefrom individuals to hedge funds, according to The WSJ.

The WSJ notes analysts said the missed payment isn't likely toprovoke an acute marketwide reaction from investors, many of whichhave been inching away for the commonwealth for years amid direeconomic news.

But the episode is the latest confirmation that Puerto Ricodoesn't have the money to meet all of its coming obligations, saidEmily Raimes, vice president at Moody's Investors Service.

"This is a first in what we believe will be broad defaults oncommonwealth debt," The WSJ quoted Ms. Raimes as saying.

The WSJ notes that the Government Development Bank for Puerto Ricosaid the island's legislature didn't set aside money for theappropriation bonds, a decision that reflects "serious concernsabout the Commonwealth's liquidity" and its need to balance payingbondholders with maintaining essential services, according to anews release from the bank. The bank did pay about $628,000remaining from prior funds, The WSJ relays.

The nonpayment is another setback for investors in debt fromPuerto Rico, which is struggling with a decade of economicstagnation and high unemployment, underscoring the commonwealth'seffort to prioritize payments as it attempts to preserve its cashand avoid a government shutdown, The WSJ relays.

About half of municipal-bond mutual funds in the U.S. haveexposure to Puerto Rico, according to research firm MorningstarInc.

The WSJ discloses that those investors have already sufferedlosses as the commonwealth's credit ratings fell to junk in recentyears and bond prices plummeted.

Some Puerto Rico bonds sold in 2014 traded Aug. 3 at about 69.25cents on the dollar, down from about 73 cents in mid-July,according to Thomson Reuters Municipal Market Data, the reportnotes.

The corporation's missed payment suggests how Puerto Rico maytreat different forms of debt going forward, said John Miller, co-head of fixed income at Nuveen Asset Management LLC in Chicago,which manages about $100 billion in tax-exempt bonds, says WSJ.Investors in the appropriation bonds have little recourse becausethe bonds are backed only by the legislature's willingness to findthe money for them. Other bonds have greater legal protections.

"It is somewhat meaningful that this is their first monetarydefault," Mr. Miller said, WSJ relays. "However, if people havebeen paying attention to the plans, this was anticipated, and itdoesn't really change the orchestrated direction that thegovernment's taking."

The WSJ notes that direction has even some former boosters backingaway. Monarch Alternative Capital LP, which at one point hadabout 5% of its now $5 billion under management invested in thecommonwealth's general-obligation bonds, told investors late lastweek that it sold off part of the position in recent weeks.

"We believe that the probability of a default scenario hassignificantly increased and could risk extending the timeline fora resolution to the island's situation," co-founder MichaelWeinstock and other firm executives wrote to investors in a letterreviewed by WSJ.

In particular, he flagged the firm's discussions with the island'spolitical leadership. "We ultimately came to the view that thesentiment of Puerto Rico's leadership had shifted and that theywould be unwilling to implement the fiscal reform measures neededto regain the market's confidence and avoid a potential default,"the letter said, WSJ notes.

A group of Puerto Rico policy makers are working on arestructuring plan and scheduled to present their findings at theend of August, says the report. Creditors, including mutualfunds, hedge funds and other distressed-debt investors, have beensplitting into committees based on which bonds they own.

The WSJ discloses that Puerto Rico has said its debt includesabout $18.6 billion of general-obligation bonds and government-guaranteed debt, $15.2 billion of sales-tax-backed bonds and $24.1billion of bonds issued by government agencies, like the PuertoRico Electric Power Authority, which is already negotiating arestructuring with creditors. Many investors hold bonds acrossthe different sectors, which could recover different amounts in arestructuring.

The restructuring process is uncertain in part because Puerto Ricois neither a U.S. state nor a sovereign nation, The WSJ says.

The report relays that all states are barred from filing forbankruptcy, but cities, such as Detroit, can seek protection underchapter 9 of the U.S. bankruptcy code. Puerto Rico is lobbyingthe U.S. Congress for a law allowing some of its entities toaccess chapter 9 protections. Until such a law passes, theisland's leaders must negotiate with creditors without thatprocess.

Matt Fabian, partner at research firm Municipal Market Analytics,Concord, Mass., said that while worries about Puerto Rico have hadlittle impact on the broader market for municipal bonds, a missedpayment could spur new selling in other commonwealth debt, WSJadds.

"The Puerto Rico market is huge and diverse," the report quotedMr. Fabian as saying. "You have to presume there will be someknock-on selling," Mr. Fabian added.

As reported in the Troubled Company Reporter-Latin America on July3, 2015, Moody's Investors Service has downgraded the Commonwealthof Puerto Rico's general obligation (GO) and guaranteed bonds aswell as its senior lien Sales Tax Financing Corporation (SrCOFINA) bonds to Caa3 from Caa2. Moody's also lowered ratingsassigned to other securities, including bonds of the Puerto RicoAqueduct and Sewer Authority, which also were downgraded to Caa3from Caa2. Bonds already in the Ca category were affirmed at thatlevel. In all, about $55.5 billion was affected by these actions.With the GO rating action, the seventh downgrade in the past fiveyears, the commonwealth's rating has declined 12 notches since2011. The outlook for all affected securities remains negative.

PUERTO RICO: Just Defaulted for First Time------------------------------------------CNN Money reports that Puerto Rico just went into default for thefirst time in its history.

The commonwealth paid a mere $628,000 toward a $58 million debtbill due Aug. 3 to creditors of its Public Finance Corporation,according to CNN Money. This will hurt the island's residents,not Wall Street. The debt is mostly owned by ordinary PuertoRicans through credit unions, notes the report.

"This was a decision that reflects the serious concerns about theCommonwealth's liquidity in combination with the balance ofobligations to our creditors and the equally important obligationsto the people of Puerto Rico," Puerto Rico's GovernmentDevelopment Bank president Melba Acosta Febo said in a statementobtained by the news agency.

The report relays that the default is a historic moment in PuertoRico's economic "death spiral," a term the island's governor,Alejandro Garcia Padilla, has used. The island is struggling withabout $70 billion in total outstanding debt, and its economy is inrecession.

The report relays that Mr. Padilla has put together a team to comeup with a plan to restructure Puerto Rico's debt crisis by the endof the summer.

According to CNN Money, Puerto Ricans are leaving the island indroves in search of jobs and stability. Unemployment is high, theeconomy is shrinking and the future looks shaky.

The report notes that Puerto Rico had to make a monthly debtpayment of $483 million. Puerto Rico paid all its debt due exceptthe $58 million due to creditors of its Public FinanceCorporation, the report relays. The government is strategicallychoosing not to pay the PFC debt because the entities that own thedebt, credit unions and ordinary Puerto Ricans, have little legalpower to fight back in court.

"This is a first in what we believe will be broad defaults oncommonwealth debt," said Emily Raimes of Moody's InvestorsService.

The other debt -- some of which is owned by Wall Street hedgefunds and hence has more legal clout -- was paid on Aug. 3, thereport discloses.

Puerto Rico has the same amount of outstanding debt as New York.Yet its economy -- worth $69 billion -- is just a fraction of theEmpire State's $1.2 trillion, the report relays.

The economy is also in a big mess. Unemployment is more thandouble the rate in the mainland United States, the report relays.

And with Puerto Ricans leaving the island in droves to look forjobs on the mainland, it only shrinks the tax base further, makingit harder for the island to pay its debts, the report says.

Meanwhile, the report relays that just when you think it can't getworse, Puerto Rico is going through a bad drought. The governmentis rationing water, adds the report.

As reported in the Troubled Company Reporter-Latin America on July3, 2015, Moody's Investors Service has downgraded the Commonwealthof Puerto Rico's general obligation (GO) and guaranteed bonds aswell as its senior lien Sales Tax Financing Corporation (SrCOFINA) bonds to Caa3 from Caa2. Moody's also lowered ratingsassigned to other securities, including bonds of the Puerto RicoAqueduct and Sewer Authority, which also were downgraded to Caa3from Caa2. Bonds already in the Ca category were affirmed at thatlevel. In all, about $55.5 billion was affected by these actions.With the GO rating action, the seventh downgrade in the past fiveyears, the commonwealth's rating has declined 12 notches since2011. The outlook for all affected securities remains negative.

PUERTO RICO: S&P Lowers Ratings on 3 PFC Series Bonds to 'D'------------------------------------------------------------Standard & Poor's Ratings Services has lowered its rating on$1.0 billion of Puerto Rico Public Finance Corporation (PFC)series 2011A, 2011B, and 2012A bonds to 'D' from 'CC' following apayment default on the bonds as of the close of business Aug. 3,2015, the first business day following the Aug. 1 stated due date,which fell on a Saturday. Although a partial payment of $628,000in interest was made Aug. 3, the amount was far short of the$58 million of principal and interest due. S&P assigns a ratingof 'D' to obligations in default of full and timely debt serviceon their due date, unless S&P believes that such payments will bemade within five business days.

This first default by Puerto Rico on tax-supported debt representsa significant departure from Puerto Rico's past practice of timelyfunding of debt service. S&P believes the default signals severeliquidity distress, whereby Puerto Rico must now choose amongwhich financial obligations it can honor, and presages otherpossible defaults as liquidity becomes further constrained duringthe next few months. The default follows the legislature'sdecision not to appropriate debt service for these bonds in itsfiscal 2016 budget.

In S&P's view, Puerto Rico's decision to deliberately miss the PFCbonds' relatively small $58 million debt service payment, comparedto annual revenues of about $9 billion, indicates that short-termliquidity distress has taken priority over preserving access todebt markets. S&P believes the small, short-term improvement inliquidity will come at the cost of investors' worsened perceptionof Puerto Rico's willingness to pay debt, at a time when PuertoRico needs cash flow financing to avoid running out of cash in thenext few months. Last year Puerto Rico sold $1.2 billion offiscal 2015 cash flow notes; the $703 million general fundoperating deficit recently disclosed for the fiscal year endedJune 30, 2015, has likely placed additional liquidity pressure onthe commonwealth. S&P believes the PFC default may further impedePuerto Rico's ability to obtain financing for cash flow needs.

S&P believes these bonds may have been selected due to theirlimited recourse for PFC bondholders in the event of legislativenon-appropriation; the 2016 budget does appropriate debt servicefor other series of bonds. In addition, the Aug. 1 PFC paymentrepresented the start of principal repayment for the PFC bonds,for $36.3 million, and thus an increase in debt service fromprevious years' PFC interest-only payments.

A putative class action lawsuit was filed on behalf of investorsagainst the holding company of Doral Bank, Doral FinancialCorporation, and several current and prior company executives.The complaint alleged that the plaintiffs purchased common stockof Doral between April 2, 2012, and May 1, 2014, at prices thatwere artificially inflated by the defendants' false and misleadingstatements.

The defendants moved to dismiss the complaint pursuant to thePrivate Securities Litigation Reform Act of 1995 and Federal Rulesof Civil Procedure 9(b) and 12(b)(6), arguing that the plaintiffsfailed to state a single claim under the applicable federalsecurities laws upon which relief can be granted.

Judge Gelpi analyzed the motion to dismiss only as to theindividual defendants because the case against Doral wasautomatically stayed when it filed a voluntary petition underChapter 11 of the Title 11 of the Bankruptcy Code.

Judge Gelpi found that the allegations regarding Wakeman andWahlman's participation in the fraudulent scheme by knowinglymanipulating the ALLL and PLLL that was reported in the numerousSEC filings, conference calls, and press releases are sufficientto meet the heightened pleading standards for scienter.

However, Judge Gelpi found that with the remaining defendants, theplaintiffs failed to plead their involvement in the purportedfraudulent scheme with the particularity required under Rule 9(b)and the Private Securities Litigation Reform Act of 1995.

A full-text copy of Judge Gelpi's July 22, 2015 opinion and orderis available at http://is.gd/gyQmVNfrom Leagle.com.

DFC estimated $50 million to $100 million in assets and $100million to $500 million in debt as of the bankruptcy filing.

The Debtor tapped Ropes & Gray LLP as counsel.

The Debtor's Chapter 11 plan and Disclosure Statement are due July9, 2015. The initial case conference is set for April 10, 2015.

The U.S. trustee overseeing the Chapter 11 case of Doral FinancialCorp. appointed five creditors of the company to serve on theofficial committee of unsecured creditors.

STANDARD REGISTER: Amends Statement of Financial Affairs--------------------------------------------------------Standard Register Co. filed with the U.S. Bankruptcy Court for theDistrict of Delaware an amended statement of financial affairs. Afull-text copy of the amended statement is available for free athttp://is.gd/DBfVfq

About Standard Register

Standard Register provides market-specific insights and acompelling portfolio of workflow, content and analytics solutionsto address the changing business landscape in healthcare,financialservices, manufacturing and retail markets. The Company hasoperations in all U.S. states and Puerto Rico, and currentlyemploys 3,500 full-time employees and 16 part-time employees.

The Standard Register Company and 10 affiliated debtors soughtChapter 11 protection in Delaware on March 12, 2015, with plans tolaunch a sale process where its largest secured lender would serveas stalking horse bidder in an auction.

The cases are pending before the Honorable Judge Brendan L.Shannonand are jointly administered under Case No. 15-10541.

The Official Committee of Unsecured Creditors tapped LowensteinSandler LLP as its counsel and Jefferies LLC as its exclusiveinvestment banker.

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Monday's edition of the TCR-LA delivers a list of indicativeprices for bond issues that reportedly trade well below par.Prices are obtained by TCR-LA editors from a variety of outsidesources during the prior week we think are reliable. Thosesources may not, however, be complete or accurate. The MondayBond Pricing table is compiled on the Friday prior to publication.Prices reported are not intended to reflect actual trades. Pricesfor actual trades are probably different. Our objective is toshare information, not make markets in publicly traded securities.Nothing in the TCR-LA constitutes an offer or solicitation to buyor sell any security of any kind. It is likely that some entityaffiliated with a TCR-LA editor holds some position in theissuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies withinsolvent balance sheets obtained by our editors based on thelatest balance sheets publicly available a day prior topublication. At first glance, this list may look like thedefinitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historical costnet of depreciation may understate the true value of a firm'sassets. A company may establish reserves on its balance sheet forliabilities that may never materialize. The prices at whichequity securities trade in public market are determined by morethan a balance sheet solvency test.

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Information contained herein is obtained from sources believed tobe reliable, but is not guaranteed.

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